BUILDING BLOCKS FOR SUCCESS

Charles PhillipsPresidentOracle Corporation

Simplicity is theKey Organizing Principle

of the 21st Century

Industry Maturation

Ÿ Customers Consolidating Around Market LeadersŸ Critical Mass ImportantŸ Driving Innovation and Business Value Through

Information

Economic Data

Growing Concentration of RevenuesAmong the Larger Vendors

69%

72%

79%81%

87%89%

60%

65%

70%

75%

80%

85%

90%

Top 5 Top 10 Top 20

2000 LTM

Source: FactSet Research Systems, using 81 publicly traded software companies (including MSFT + IBM’s softwarebusiness).Data as of: December 5, 2004.

Software Investment by Type:Business – 2003

29%

28%

Own

account

43%

Source: Bureau of Economic Analysis, Table 11: Software Investment and Prices.Data as of: August, 2004.

Prepackaged

Custom

Software Investment by Type:Business (1997 – 2003)

32%

35%

32%

34%

36%

31%

31%

34%

35%

28%

34%

37%

28%

33%

39%

30%

29%

41%

29%

28%

43%

0%

25%

50%

75%

100%

1997 1998 1999 2000 2001 2002 2003

Own account

Custom

Prepackaged

Source: Bureau of Economic Analysis, Table 11: Software Investment and Prices.Data as of: August, 2004.

Software Universe Data

- Data on 19 Companies Tracked inthe Software Universe

Y/Y License Revenue Growth

38%

32%29%

10%

1%

8%

1%

33%35% 36%

57%

40%

27%

2%

-16%

-21%-22%

-25%

-13%

-6%

-11%

-2%

4%

12%

16%

11% 10%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

1998 1999 2000 2001 2002 2003 2004

Aggregate license revenue for 19 publicly traded software companies. Quarterly data.Source: Company reports – as of 3CQ:04.

Software Industry Employment

0

30,000

60,000

90,000

120,000

1998 1999 2000 2001 2002 2003 2004

Aggregate employees for 19 publicly traded software companies on a quarterly basis. Quarterly data.Source: Company reports – as of 3CQ:04.

Software Industry Employment

28%

23%

16%

11%10%

11%

14%

17%

19%

14%

9%

4%

-1% -1%-2%

-3%-4%

-3%-2%

2% 3% 3%

6%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1999 2000 2001 2002 2003 2004

Aggregate employees for 19 publicly traded software companies on a quarterly basis. Quarterly data.Source: Company reports – as of 3CQ:04.

Year/Year % Growth

Enterprise Computing Trends

Ÿ Information AgeŸ Standardization

Information AgeApplications

operate on and presentdata that are

timelyconsistent complete global

Information Age Applications

Ÿ Information DrivenŸ Standards DrivenŸ Industry Driven

SQLDatabase QueryTCP/IPNetwork ProtocolIntelProcessorHTMLPresentationJSR 168PortalJDBCDatabase ConnectXMLMarkup Language

EJBServer ObjectsJMXManagement APIJMSMessagingJavaLanguageLinuxOperating System

?ApplicationsWi-Fi/Wi-MaxWirelessIMAPE-MailBPELBusiness ProcessUnicodeEncodingSAMLSecurity Mark UpHTTPTransport ProtocolLDAPObject DirectoryUDDIService DirectorySOAPObject AccessWSDLService DescriptionSCSIData Transfer

StandardsA Long Journey

Information as a Strategy

Ÿ Manage: GridŸ Process: ApplicationsŸ Analyze: Business IntelligenceŸ Host: On Demand

The Information CompanySimplify, Standardize, Automate

Grid FusionMiddleware

Information AgeApplications

• Oracle E-Business Suite• PeopleSoft Enterprise• JD Edwards Enterprise One• JD Edwards World• Retek

• Application Server• Integration / SOA• Business Intelligence• Identity Management• Data Hubs• Collaboration Suite

• Database• Real Application Clusters

(RAC)• Enterprise Manager

XThousands of reference customers

XLDAP Directory

XWeb Cache

XIdentity Management

3rd partyContent management

ABAP/Java ServerStandard Java server with 3rd party support

ProprietaryStandard integration via web services

MDM needed for SAPapplications

Data Hub

XCentralized management and provisioningof entire tech stack

Primarily ProprietaryABAP

Java development environment

XBusiness Process Execution Language

Costly add onsBusiness Intelligence

Limited and onlyinside SAP Portal

Collaboration

XPortal

SAPNetweaver

OracleFUSION MIDDLEWARE

Applications Infrastructure

Information Driven Enterprise

Ÿ Alignment

Ÿ Collaboration

Ÿ Measurement

Ÿ Transparency

Aligning all constituents via commonfacts objectives

Shared information for sharedprocesses

Accurate metrics for continuousimprovement and execution

Compliance and authenticatinginformation for all stakeholders

Process Centric

Information Driven

Information Age Applications

Should give you information

Collaboration – Accessing Information

Calendar

E-mail

Voicemail

Files

Search

OutlookOutlookFaxFax VoiceVoice

WirelessWirelessWebWeb

Real-Time Collaboration

An innovative way to build

Information Age Applications

Data HubsCustomers,Customers,Products,Products,

EtcEtc

Customer Data Hub

Siebel

SAP

Legacy

Clarify

PeopleSoft

ExternalData

Lawson

SiebelEurope

• Customer data of record• Continuously Synchronized• Foundation for Data Quality

Enterprise Application Trends

Ÿ Information– Enterprise Performance Management– Customer segmentation– Data warehouses and Data Marts– Business Process Monitoring– KPIs and dashboards– Data Hubs

Ÿ Industry expertiseŸ Instance consolidationŸ Applications engineered with infrastructureŸ Standardization

Standardizing IT

Ÿ Applications TechnologyŸ InterfacesŸ LanguagesŸ IntegrationŸ DataŸ ProcessorsŸ StorageŸ Interconnects

GridSimplify and Optimize

Ÿ Pay as you goŸ Scale up and outŸ Latest processorsŸ Distribute peak loadsŸ Maximum reliability

Oracle Information ArchitectureD

evel

opm

ent F

ram

ewor

k Information Access

Business Processes

Data Hub

Grid Infrastructure

Enterprise Managem

ent

Oracle On Demand

Common Services

• Directories• Security• Installation• Notification• Content management• Alerting• Web Services• Workflow• Modeling• Collaboration• Management repository• End to end service level

monitoring• Scripting

Integration Services

Oracle Information ArchitectureD

evel

opm

ent F

ram

ewor

k Information Access

Business Processes

Data Hub

Grid Infrastructure

Enterprise Managem

ent

Oracle On Demand

Customer Benefits

• Certified configurations• Synchronized stacks• Pre-assembly• Fewer moving parts• Standard components• Consolidation• Centralized monitoring• Secure configurations• Engineered change

management• Auto discovery• Common installation• Centralized administration• Best practices cost of

ownership

Integration Services

Summary

Ÿ Meeting the Challenge– Industry Consolidation– Business Consolidation

Simplicity is theKey Organizing Principle

of the 21st Century

AQ&Q U E S T I O N SQ U E S T I O N S

A N S W E R SA N S W E R S

BUILDING BLOCKS FOR SUCCESS